'Stick to the plan': MPs welcome Governments spring budget

In its spring budget, the Government announced the raising for the High Income Child Benefit (HICBC) to £60,000, taking 170,000 families out of paying this tax charge from April 2024.

It means the charge continues to withdraw Child Benefit from high-income families as it was designed to do, without unfairly penalising those on middle incomes, so that almost half a million families will gain an estimated average of £1,260 in 2024-25.

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The Budget also confirmed the increasing of that taper to £80,000, the point at which the Child Benefit is fully withdrawn, halving the rate at which HICBC withdraws child benefit and in turn, improving people’s incentives to continue working or to take up more hours.

The Budget also builds on the Government’s Autumn Budget, which included a significant expansion of childcare so that from September 2025, working families in England will be offered 30 hours of free childcare for their child aged nine months old up to school age.

Ranil Jayawardena MP (Image: Getty)

The package is worth an estimated £6,500 for every family with a two-year-old using 35 hours of childcare a week.

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MPs Ranil Jayawardena and Maria Miller said: “With inflation down, wages rising, the Government’s plan is working and we must stick to it.

“The Spring Budget delivers a fairer system for families who wish to work and care for their children by raising the threshold for the High Income Child Benefit Charge, meaning hard working parents can keep more of the money they earn.

“This was made possible thanks to the long-term decisions the Government has taken to stick to the plan and strengthen the economy, helping to secure a brighter future for families across the country.”